Bullish oil bets reached a four-month excessive within the penultimate week of 2024 as traders place for a brand new yr that can see Donald Trump’s return to the White Home.
Cash managers boosted net-long positions on West Texas Intermediate by 21,694 tons to 182,895 tons throughout the week ended Dec. 24, in accordance with the Commodities Futures Buying and selling Fee. Oil futures traded in a less-than $3 band throughout that week, suggesting the rise in bullish bets have been resulting from longer-term positioning adjustments relatively than short-term value reactions.
The rise comes per week after hedge funds boosted bets on rising costs by probably the most in a yr. Whereas a looming provide glut and tepid China demand are weighing available on the market heading into 2025, traders are however positioning for upside danger as Donald Trump returns to the White Home and conflicts in Ukraine and the Center East proceed to simmer. The US president’s place on main oil exporter Iran is a key wildcard for merchants.
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Algorithmic merchants flipped to net-long on each WTI and Brent crude earlier within the month and have continued to increase these positions, in accordance with Bridgeton Analysis.
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